Entries in Economic Growth (28)
New Hampshire Senate
Cuts would benefit 95% of NH private sector workforce
Concord, NH -- The New Hampshire Senate today passed two important bills as part of the Senate Republican agenda to help bolster New Hampshire’s economy by reducing the Business Profits Tax from 8.5% to 7.9% and the Business Enterprise Tax by 10% over the next three budgets.
“Our entire focus this session is to get New Hampshire’s economy moving and passing a state budget that spends only what the state can afford. This modest cut in the state’s business taxes sends a message to our job creators in New Hampshire and those looking to move here that we are serious about wanting their business and the jobs they bring with them,” said Senate President Chuck Morse (R-Salem).
“Passing these bills was a critical step in how the Senate will go about building the next budget. As our economy expands, we can certainly afford to make modest business tax cuts a priority within our $10.5 billion state budget,” Morse continued. “The cost of implementing job-friendly reductions is one-quarter of one-percent of the entire State’s current operating budget.”
“New Hampshire job growth has lagged. Hardworking business owners have had difficulty expanding or hiring new employees,” said Senator Jeb Bradley (R-Wolfeboro). “Reducing the rate of the Business Profits Tax and Business Enterprise Tax will help companies re-invest in people, growing their businesses and adding new jobs – the types of things we need and hope to see more of in the state.”
“With the Governor’s support, our state can be among the 27 other states that have reduced their corporate tax rates to spur economic growth. Doing nothing will allow New Hampshire to pay the highest business tax rate in New England alone,” said Bradley.
“New Hampshire right now has the 3rd highest business tax rates in the country which is a significant burden for employers. By reducing the BET and BPT, New Hampshire will take a step towards restoring a competitive business environment when compared to other states in the region and nationally,” said Andy Sanborn (R- Bedford).
“This was the right decision because it will let everyone know that New Hampshire is open for business. Reducing this tax barrier will not only incentivize existing business owners who pay taxes to grow their business, but will also encourage new employers to move into the state.”
“I urge the House and Governor Hassan to support these important bills, and send a strong signal that we are serious about creating economic opportunity for everyone,” Sanborn added.
Nashua Telegraph Editorial: Tax cuts offer no growth guarantees
If you were sitting around the kitchen table discussing how best to improve the family budget picture, you’d have to make some choices.
Some of them would be obvious, like canceling that family vacation everybody was looking forward to, buying cheaper brands of groceries, perhaps, and not going out to eat.
Other choices would be more involved, like whether someone in the family should get a part-time job to bring in extra money.
The last thing you’d probably do is volunteer for a cut in pay.
Yet, that’s the direction some Republicans in the New Hampshire Senate are advocating when they suggest that the state cut its two major business taxes, the Business Profits Tax and the Business Enterprise Tax.
One bill in the Senate, sponsored by Sen. Jeb Bradley, R-Wolfboro, would lower the state’s Business Profits Tax from 8.5 percent to 8 percent over 4 years. “Lowering the state’s Business Profits Tax would continue to encourage businesses to seek growth and would help attract new businesses to New Hampshire,” Bradley said.
It would also mean $10 million less in revenue for the state in fiscal years 2016 and 2017, and $20 million less in fiscal years 2018 and 2019.
Another bill, sponsored by Sen. Andy Sanborn, R-Bedford, would lower the Business Enterprise Tax from .75 percent to .675 percent over three years and would result in $7.6 million less in fiscal year 2017, $15 million less in 2018 and $22 million less in fiscal year 2019.
Gov. Maggie Hassan has said the tax cuts would create a hole in the budget, though Bradley and Sanborn see things differently.
The underlying premise is that cutting the rates would create more revenue by enticing new businesses to relocate to the state, or prompting those that are already here to expand and hire more workers.
That might be true if the state’s business taxes were the only obstacle to economic growth, but they’re not. Other factors include high energy costs, an aging, less-productive workforce and the exodus of the state’s young adults. As a practical matter, a half percent decrease in the BPT over 4 years is little more than symbolic and is unlikely to turn the state into a business magnet.
We understand that the state’s business tax rates are among the highest in the nation, and we’re not inherently opposed to some reduction. But we’re also not under the illusion that it would lead to an economic promised land of jobs and revenue growth.
The more prudent assumption to make when lowering tax rates is that revenue will be lost and will have to be made up by cutting state programs and services or finding new revenue sources.
Honesty dictates that lawmakers identify which areas of government would take the hit if the revenue growth they project fails to materialize, as we think is the case.
The state’s higher education system? That was targeted the last time Republicans controlled both chamber of the Legislature in 2011-12, but New Hampshire college graduates already carry the highest student debt burden in the country and UNH is already out of reach for many of them. Cutting state support for higher education will only accelerate the outward migration of young people from the state.
Health and Human Services is the state’s largest agency, but they’re already facing a $58 million budget shortfall that is partly the result of the state’s settlement of a lawsuit brought by the federal government with regard to mental health services, and another brought by the state’s hospitals over a tax that was ruled unconstitutional. [...]
Before lawmakers cut business taxes, they should first explain how they would make up the lost revenue – preferably by identifying offsets that don’t involve magical thinking or hurt the state’s most vulnerable.
Click here for the full Telegraph Editorial:
This week, Kelly Ayotte voted to advance legislation that would disregard the federal review process and force construction of the Keystone XL pipeline. A thorough State Department review ensures that the views of local communities are heard, and that the environmental impacts and safety concerns of any project are considered.
Kelly Ayotte’s vote to cut out the voices of local communities isn’t just bad for this project; it also sets a dangerous precedent for projects here in New Hampshire like Northern Pass, the Portland-Montreal pipeline, and the Kinder Morgan pipeline.
Click here to add your name to our petition urging Kelly Ayotte to put local communities first, not big oil companies.
While Kelly Ayotte likes to claim that she supports local input on projects here in New Hampshire, her vote to bypass the normal review process for the Keystone XL pipeline speaks louder than her words.
Will you add your voice to tell Kelly Ayotte that the input of local communities matters?
Raymond Buckley, Chairman
New Hampshire Democratic Party
Concord, NH – Yesterday, Governor Maggie Hassan was sworn in for a second term as New Hampshire’s 81st Governor, pledging to continue fighting for the priorities that will support small businesses, expand opportunity for middle class families, and move our economy forward.
Governor Hassan outlined a bold vision for the future where we continue to hold down the cost of higher education, maintain our commitment to ensuring access to quality, affordable health care, and finally raise the minimum wage for hard-working Granite Staters.
See below for a roundup of coverage from Governor Hassan’s inauguration:
WMUR: Governor calls for bipartisan action to help economy
Gov. Maggie Hassan called for a commitment to helping the middle class, strengthening the state's economy and establishing a commuter rail from Boston to Manchester in her second inaugural address Thursday. The governor said the state must adapt to changing economic pressures to help workers, businesses and students.
Click here for full story: http://www.wmur.com/politics/gov-maggie-hassan-to-be-inaugurated-for-second-term/30591214
Union Leader: Gov. Hassan, in inaugural speech, urges creativity and new approaches to address problems
Gov. Maggie Hassan in her inaugural speech Thursday urged lawmakers and the state to take a different approach to solving the state’s problems after she was sworn in for her second term. She touted a creative approach that looks outside the box to bring about solutions to lingering problems such as affordable housing, high energy prices, the escalating cost of higher education and greater opportunities for young people so they do not move out of state.
Click here for full story: http://www.unionleader.com/article/20150108/NEWS0621/150109262
Concord Monitor: Hassan focuses on commuter rail, minimum wage and low education costs in inaugural address
Gov. Maggie Hassan kicked off her second term yesterday pledging support to increase the state’s minimum wage and bring a commuter rail from Boston to Nashua and Manchester. In her noontime inaugural address, Hassan framed many of her goals to improve the state’s economic climate – from keeping higher education and health care costs low, to improving access to child care and maintaining Medicaid expansion.
Click here for full story: http://www.concordmonitor.com/home/15139832-95/hassan-focuses-on-commuter-rail-minimum-wage-and-low-education-costs-in-inaugural-address
Nashua Telegraph: Hassan pushes for strong economic growth during inaugural speech
During her second inaugural address, New Hampshire Gov. Maggie Hassan called for a stronger commitment to education and low-cost energy to help grow the economy while advocating for the expansion of commuter rail from Boston into the Granite State. Hassan lobbied Thursday for updated science and mathematics benchmarks, as well as a push to retain younger workers by offering services favored by middle-class families during her inaugural address. She also reiterated her support for a higher minimum wage and greater access to health care options, listing them as some of her second term priorities to build an innovation economy.
Click here for full story: http://www.nashuatelegraph.com/news/statenewengland/1054865-469/hassan-pushes-for-strong-economic-growth-during.html
Associated Press: Gov. Hassan highlights rail, energy supply as priorities
Democratic Gov. Maggie Hassan put a priority on bringing commuter rail to New Hampshire, increasing the state's natural gas supply and raising the minimum wage in her inaugural address Thursday to kick off her second two-year term.
Click here for full story: http://hosted2.ap.org/NHWLV/43dda9ff6c4347c09d7ecdb8d0d1cdea/Article_2015-01-08-NH--Governor-New%20Hampshire-Inauguration/id-491ea9db1e734b53ae77cd9a59719c01
Nashua Telegraph: Nashua student recognized by Hassan during inauguration
CONCORD – A Nashua High School South student received special recognition Thursday from Gov. Maggie Hassan, who praised the teenager’s innovative purification system and her undaunted attitude in facing the global challenge of providing safe drinking water. […]“It was pretty amazing,” Deepika said. “I’m very honored that (the governor) acknowledged me and I’m also very happy that she’s taking a real interest in science, technology, engineering and math; and education in New Hampshire as a whole.”
Click here for full story: http://www.nashuatelegraph.com/news/1054866-469/nashua-student-recognized-by-hassan-during-inauguration.html
Concord Monitor: After inauguration, governor welcomes visitors to State House reception
When Madison Tucker heard the governor would be hosting an open house at the State House, the 10-year-old immediately knew where she needed to be last night.
“I was like . . .” One moment, actually. Madison paused, eyes widening, to properly illustrate her reaction to this particular classroom announcement from her teacher at Christa McAuliffe School in Concord. She gasped. Moving on. “I need to tell my father,” she thought, “because I need to go. I want to meet her.”
Click here for full story: http://www.concordmonitor.com/photos/15143587-95/after-inauguration-governor-welcomes-visitors-to-state-house-reception
NHPR: State House Open House Features Made In New Hampshire Goods
Following the inauguration ceremonies earlier in the day, the State House was opened to the public last night for children’s activities, music and more. Governor Hassan was on hand to meet with residents and take pictures. In the State House cafeteria, local businesses showcased their products like apples with edible prints on the skin, toffee and wine stoppers.
Click here for full story: http://nhpr.org/post/state-house-open-house-features-made-new-hampshire-goods